Trust Accounting

BC lawyers often handle trust funds on behalf of other people. This is an important responsibility and fundamental to the conduct and completion of all types of business and personal legal transactions and in settling of disputes. 

All lawyers who handle trust funds for clients or third parties as part of their practice are subject to rigorous trust assurance standards.

Resources for lawyers

Trust Accounting webinars

Trust Accounting Basics

The Law Society of BC is offering a free two-hour program provided by audit team leader Krista Adamek and trust auditor David Cho. The program covers the basics of trust accounting and includes information on opening and operating a trust account, seven key concepts in trust accounting, dealing with trust shortages and inactive trust balances and understanding and preparing trust reconciliations. The program is eligible for two hours of CPD credit. 

Watch the webinar here.

The following two attachments will be discussed during the program.

Trust Accounting Regulatory Requirements

The Law Society of BC is offering a free one-hour program provided by senior auditors Angela Porco and Justin Wright. The program covers reporting requirements to the Executive Director of the Law Society, the compliance audit process and common exceptions identified during a compliance audit. The program is eligible for one hour of CPD credit.

Watch the webinar here.

Anti-Money Laundering Measures – 2024 update 

The Law Society offers a free program to help lawyers comply with the Society’s anti-money laundering rules. The program has been updated for 2024 and is provided by Practice Advisor Barbara Buchanan, KC and Audit Team Leader Tina Kaminski. It includes information on money laundering, cash, client identification and verification, red flags and risk management. The resources referred to in the program are available on the Client ID & Verification web page. The program is eligible for three hours of CPD credit (practice management, professional responsibility and ethics).

View the 2024 Anti-Money Laundering Measures Program on YouTube.

(The 2020 program remains available on YouTube for reference purposes.)

Forms

Requisition – Bank Draft
Requisition – Electronic transfer of trust funds
Confirmation of Law Foundation of BC Interest Remittance

Checklists

Trust Accounting Checklist
Sample Checklist of Internal Controls
Disposal Information Checklist

Templates

Cash Receipt Template
Opening new trust account sample letter Word | PDF
Trust Reconciliation Template 

Other resources

Trust Accounting Handbook
Are you or any of your employees US citizens? (Fall 2015 Benchers' Bulletin, p. 13)
Garnishment of Lawyers' Trust Accounts
How to review a trust bank reconciliation
Canada Deposit Insurance Corporation: FAQs on new rules in effect April 2022

Information and guidance for lawyers

The Trust Assurance department staff are knowledgeable and available to assist the profession with their trust and general account questions. Lawyers are encouraged to contact the Trust Assurance department at trustaccounting@lsbc.org.